Correlation Between Play2Chill and CFI Holding
Can any of the company-specific risk be diversified away by investing in both Play2Chill and CFI Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Play2Chill and CFI Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Play2Chill SA and CFI Holding SA, you can compare the effects of market volatilities on Play2Chill and CFI Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Play2Chill with a short position of CFI Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Play2Chill and CFI Holding.
Diversification Opportunities for Play2Chill and CFI Holding
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Play2Chill and CFI is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Play2Chill SA and CFI Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFI Holding SA and Play2Chill is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Play2Chill SA are associated (or correlated) with CFI Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFI Holding SA has no effect on the direction of Play2Chill i.e., Play2Chill and CFI Holding go up and down completely randomly.
Pair Corralation between Play2Chill and CFI Holding
Assuming the 90 days trading horizon Play2Chill SA is expected to under-perform the CFI Holding. But the stock apears to be less risky and, when comparing its historical volatility, Play2Chill SA is 1.22 times less risky than CFI Holding. The stock trades about 0.0 of its potential returns per unit of risk. The CFI Holding SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 25.00 in CFI Holding SA on August 30, 2024 and sell it today you would lose (7.00) from holding CFI Holding SA or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.53% |
| Values | Daily Returns |
Play2Chill SA vs. CFI Holding SA
Performance |
| Timeline |
| Play2Chill SA |
| CFI Holding SA |
Play2Chill and CFI Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Play2Chill and CFI Holding
The main advantage of trading using opposite Play2Chill and CFI Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Play2Chill position performs unexpectedly, CFI Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CFI Holding will offset losses from the drop in CFI Holding's long position.| Play2Chill vs. NGG | Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Detalion Games SA | Play2Chill vs. CFI Holding SA |
| CFI Holding vs. Tower Investments SA | CFI Holding vs. Centrum Finansowe Banku | CFI Holding vs. Alior Bank SA | CFI Holding vs. Santander Bank Polska |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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